Kenya’s Trust Administration Act, 2026: Key Changes for Trusts, Trustees and Families

Key Takeaway
The Trust Administration Act, 2026 (No. 28 of 2026) (the “Act”) was assented to by the President on 8 September 2026 and will come into force on 25 September 2026. The Act consolidates Kenya’s legal framework governing trusts and trustees and repeals the Trustees (Perpetual Succession) Act (Cap. 164) and the Trustees Act (Cap. 167).

The Act introduces, among other changes, a formal registration and incorporation regime for trusts, statutory recognition of different types of trusts, beneficial ownership disclosure requirements, an enforcer framework, ongoing filing and record-keeping obligations, and a comprehensive framework governing trustee duties and liability.

A new framework for trusts in Kenya
The Act establishes a single legislative framework for the creation, registration, incorporation, administration and dissolution of trusts. It provides for a Registrar of Trusts within the Business Registration Service (BRS) and establishes a Register of Trusts to be maintained by the Registrar.

A significant distinction is made between registered trusts and incorporated trusts. Registration does not confer legal personality on a trust. By contrast, an incorporated trust becomes a body corporate with perpetual succession and the capacity to sue and be sued and to acquire, hold and dispose of property in its own name. 

Importantly, a written trust must be registered or incorporated under the Act and is not enforceable unless registered or incorporated, although a person claiming an interest under an unregistered or unincorporated written trust may apply to court for recognition or enforcement.

Recognised types of trusts
The Act expressly recognises three principal categories of trusts:

Charitable trusts: established exclusively for purposes including the relief of poverty, advancement of education or religion, promotion of human rights and fundamental freedoms, environmental protection or another purpose beneficial to the general public.

Non-charitable purpose trusts: established to fulfil a specific lawful purpose and capable of existing without an identifiable beneficiary.

Family trusts: whether living or testamentary, established for planning or managing personal estates and the preservation or creation of wealth for generations. A family trust must be a non-trading entity.

New requirements for trustees and trust governance
The Act introduces statutory qualifications for trustees. Natural persons must be over eighteen and must not be disqualified under applicable law. Corporate trustees must meet specified requirements, including being incorporated in Kenya with corporate trustee services as their main object, and must have a local contact person who is a Kenyan resident.

The Act also introduces the role of an enforcer, who may monitor implementation of the trust, require remedial action by trustees, report breaches and pursue legal action. An enforcer cannot simultaneously perform these functions while acting as a trustee of the same trust.

Trustees are subject to express statutory duties to exercise reasonable care, skill and diligence, act within their powers, preserve trust property, avoid conflicts, keep trust property separate and maintain adequate records.

The Act also strengthens trustee accountability. A trustee who commits or participates in a breach of trust may be liable for resulting loss or depreciation and may face an administrative penalty. A trust deed cannot exclude liability arising from dishonesty, wilful misconduct or gross negligence.

Beneficial ownership and transparency
The Act introduces specific beneficial ownership requirements for trusts. Every trust must compile and maintain a register of its beneficial owners and lodge the register with the Registrar. Changes to beneficial ownership must be lodged within twenty-one days.

The Act also requires trusts to maintain prescribed records, including information relating to settlors, trustees, beneficiaries, enforcers and beneficial owners, as well as trust deeds, trust property and relevant accounting records. Many of these records must be retained for at least seven years.

Ongoing compliance obligations
Trust administration will no longer be limited to the establishment and management of trust assets. The Act introduces continuing statutory compliance obligations, including:

• filing annual returns within thirty days of the anniversary of registration or incorporation;
• maintaining accounting and other prescribed records;
• notifying the Registrar of specified changes, including changes to trustees and beneficial ownership;
• electronic filing where required by the Registrar; and
• compliance with the Data Protection Act when processing personal data.

The Act also provides for the appointment of trust agents, who may be advocates of the High Court of Kenya, Certified Secretaries or Certified Accountants. Trust agents may assist with trust formation, registration and incorporation, statutory filings and, for family trusts, provision of a registered office address.

Transitional provisions for existing trusts
Existing trusts are not required to start again from the beginning. Trusts incorporated under the repealed Trustees (Perpetual Succession) Act and certain trusts created through registration under the Registration of Documents Act are deemed to be trusts under the new Act.

However, all existing trusts must comply with the requirements of the Act within twenty-four months of its commencement, or within such other period as the Registrar may direct. Existing incorporated trusts must also lodge their beneficial ownership registers with the Registrar within twenty-four months, subject to any extension granted by the Registrar.

What should trustees and families do now?
In anticipation of the Act coming into force on 25 September 2026, trustees, settlors and beneficiaries should consider:

1. Reviewing existing trust structures and trust deeds against the new statutory requirements.
2. Confirming trustee composition and eligibility, including the requirements applicable to corporate trustees.
3. Preparing beneficial ownership information and supporting records.
4. Reviewing governance and record-keeping arrangements, including accounting records and trust property registers.
5. Considering the appointment of a trust agent to support ongoing statutory compliance.
6. Assessing whether existing trust structures require amendments, registration or incorporation under the new framework.

The Act also preserves certain tax provisions applicable to registered family trusts under the Income Tax Act and Stamp Duty Act. These tax provisions should, however, be considered separately from the substantive changes introduced by the Trust Administration Act.

Conclusion
The Trust Administration Act, 2026 marks a significant change in the legal and regulatory framework applicable to trusts in Kenya. By introducing formal registration and incorporation mechanisms, beneficial ownership obligations, enhanced trustee duties, ongoing filing requirements and greater regulatory oversight, the Act places increased emphasis on the governance and continuing compliance of trust structures.

With the Act commencing on 25 September 2026, trustees, families and professional advisers should use the transitional period to review existing arrangements and identify any actions required to achieve compliance within the prescribed twenty-four-month period.

This article is provided for general information purposes only and does not constitute legal advice. Specific advice should be sought in relation to individual trust structures and circumstances. For legal advice concerning this alert, please contact our Partners, [email protected], and  [email protected].

*Contributors
 • Anne Muhalia, Senior Associate, Private Wealth
 • Eva Njuguna, Trainee Lawyer, Private Wealth